The Reason That the Production Possibilities Frontier Is Usually a Bow-Shaped

question 16

Multiple Choice

The reason that the production possibilities frontier is usually a bow-shaped curve instead of a straight line is that:

• A)a curve makes it easier to illustrate the concepts of scarcity and prices than a straight line.
• B)early economists began drawing them in this way and the convention has continued throughout the years.
• C)output eventually reaches a maximum and then declines.
• D)resources are not perfectly adaptable to the production of all goods.
• E)the frontier will shift outward over time.

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Definitions:

Early-stage

Refers to the initial periods or phases in the development or progress of something, often used in the context of startups or new projects.

Long-term Growth

The sustained increase in the economic performance or potential of an entity over an extended period, often involving strategies aimed at competitive advantage, market expansion, and innovation.

Company's Potential

The capacity or capability of a company to achieve future growth, success, or profitability.

Industry

Refers to the production of goods or related services within an economy, characterized by the specific sector or type of business.